Does Bitcoin Have Real Value?

CURRENCY: MONEY IS SIMPLY A TOOL USED TO EXCHANGE FOR THINGS THAT DO HAVE IT

- Paul Roux

Bitcoin is a tough nut to crack. I get it. So, in this article, I'll break it down in a way that's easier to understand.

What is fiat currency?

Before we get into bitcoin, let's talk about the money/currency we are familiar with and already use in our daily lives—the rand, the dollar, the euro. It's called "fiat currency."

"Fiat" is Latin for "because I said so." In our world, the "I" is the government. So, fiat money is essentially money "because the government says so."

Here are three key features of the fiat system:

1. Control: Fiat money is issued and managed by a country's government or central bank. We entrust them to preserve the value of our money and use our taxes wisely.

2. Supply: Many people still believe money is backed by gold, but this system was abandoned in the 1970s. Today's money is not pegged/linked to anything physical, which means governments can (and do) print more of it whenever they feel the need to.

3. Transparency: Most democracies have national budgets and independent audits to promote compliance and transparency. However, the average citizen cannot effectively track how their tax money is spent.